How best to describe a standing order to mortgage lender?
Options
Pegasaurus
Posts: 35 Forumite
Hi all - and especially the ever helpful brokers on here!
We're at the final hurdle with a potential mortgage lender as we attempt to remortgage to a really good rate. Passed credit checks, looks like valuation is OK, etc. However they've been through my bank statements and are understandably querying a standing order to my parents tagged 'loan'.
What's your advice re: how to respond. If I say "it was to repay our contribution to a group family holiday and that was the final payment" it sounds a little too convenient, right? What sort of follow up/proof would they likely want? There's no documentation for the loan or anything so nothing to produce.
Thanks in advance.
We're at the final hurdle with a potential mortgage lender as we attempt to remortgage to a really good rate. Passed credit checks, looks like valuation is OK, etc. However they've been through my bank statements and are understandably querying a standing order to my parents tagged 'loan'.
What's your advice re: how to respond. If I say "it was to repay our contribution to a group family holiday and that was the final payment" it sounds a little too convenient, right? What sort of follow up/proof would they likely want? There's no documentation for the loan or anything so nothing to produce.
Thanks in advance.
0
Comments
-
Pegasaurus wrote: »What's your advice re: how to respond. If I say "it was to repay our contribution to a group family holiday and that was the final payment" it sounds a little too convenient, right?
If that's what it is, go for it.0 -
Thanks. Is an anecdotal response usually enough to pass muster?!0
-
You have to tell the truth, so if that is what it is, that is what it is. All you can do is tell them what it is and see what they come back with.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
-
Thanks. Well, it won't be on the next month's bank statement so if they need to see that, it's no problem.0
-
Is that what it was for? I would advise telling the truth, keeps things simple. If that is not for what it is, and you tell a porkie, remember that they may seek comfirmation from your parents and that involves them in the porkie too.0
-
Yep. But regardless, strikes me that only legally binding financial commitments should factor into decision making. Although I know the whole gifted deposit thing for first time buyers must be a big factor for lenders.0
-
Pegasaurus wrote: »Thanks. Well, it won't be on the next month's bank statement so if they need to see that, it's no problem.
Is this the £22k you owed your parents last November?0 -
Pegasaurus wrote: »However they've been through my bank statements and are understandably querying a standing order to my parents tagged 'loan'.
Did you declare the "loan" on your application form?
Likewise before signing the form did you read the declaration that you were signing.0 -
Englishman: no - that was covered by additional lending with my current mortgage provider (which is why I'm moving lender, to combine the sub-accounts)
Thrugelmir - no, because the remortgage isn't until August so didn't see it as relevant.0 -
So will the loan be paid off by August?0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards